[ 449 ] Economics GED ® TEST SOCIAL STUDIES FLASH REVIEW • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • _____________ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • How did the Physiocrats differ from the Mercantilists? a. The Mercantilists favored farming; the Physiocrats favored industry. b. The Physiocrats favored government regulation; the Mercantilists did not. c. The Physiocrats favored the wealthy; the Mercantilists favored the poor. d. The Mercantilists favored government regulation; the Physiocrats did not. Use the passage to answer the following two questions. A standard of living is essentially the minimum of the necessities or luxuries of life to which a person or a group is accustomed. The average standard of living in a country may be measured by first determining the country’s gross national product, or GNP (the value of the goods and services produced in the national economy in a given year), and then by calculating per capita GNP (the GNP divided by the number of people in the country). Per capita GNP tells how much each person would receive if all the goods and services produced in the country during the year were divided equally. An individual’s standard of living, of course, may improve or decline depending on circumstances. Retirement from employment, for instance, often leads to a decline in the standard of living as retirees attempt to live on a percentage of their former income. The average standard of living in a country may be subject to change due to political upheaval, forces of nature, or global economics. Which of these circumstances would almost certainly improve a person’s standard of living? a. divorcing a spouse b. having a child c. receiving a college diploma d. filing tax forms on time